Ukraine Markets Daily (February 20, 2018)

The UX index decreased by 0.1% yesterday while the PFTS index remained unchanged (in UAH terms). The WIG-Ukraine index increased by 0.1%. On the interbank exchange market, the UAH/USD was up by 0.8% to UAH 27.01 (mid price), according to Thomson Reuters. The official exchange rate reported by the NBU was UAH 26.76.

Ukreximbank plans to make a Eurobonds placement

The state-owned export-import bank – Ukreximbank plans to issue 5-year Eurobonds denominated in Ukrainian Hryvnia. The principal amount and the coupon for Loan Participation Notes (LPN) will be repaid in U.S. dollar. The placement will be led by Citigroup Global Markets Limited and J.P. Morgan Securities plc., which will organize the road show of the LPN in Europe. The placement will be made through the Bank-owned British Biz Finance Plc and for now, there is no information about the issue amount and the interest to be paid.

Our view:

At the moment, Ukreximbank’s debt portfolio consists of three Eurobonds issues with USD 1,475 mn of the total amount outstanding and maturities in 2022, 2023 and 2025. Considering the fact that the Bank already has an active issue with maturity in 2023, we think that the new placement’s amount will not exceed USD 700 mn, while the annual coupon rate will be not less than 8.0%.